There are many reasons that people have to apply for personal loan in Singapore. They have to meet different types of expenses, especially in an emergency. People can avail unsecured as well as secured personal loans. In the case of unsecured loans, collateral is not needed. The lender will not have any authority of taking any assets of the debtor in case the loan is not paid. In the case of a secured personal loan, collateral is needed and the lender can seize if the loan is not paid. There are many banks and financial institutions that provide the loan and one such institution is MoneyIQ SG. Let us know about personal loans in detail.

Why personal loan is needed?

People need a personal loan to get a large sum of money to meet their expenses. It is better to go for short-term personal loans rather than the long term. Sudden expenses can occur any time and these include hospital bills, weddings, and many others. In all these cases, a big amount of money is needed and people can go for personal loans. Personal loans can also be availed by students. This is a special type of personal loan which students can avail to pay their tuition fee and other expense related to education. If any student wants this loan, he has to submit the documents regarding the admission to prove that he is a student. Some other reasons for taking the loan are as follows.

• Emergency in family
• Emergency related to medical
• Vacation
• Honeymoon
• Expenses related to education

Working with personal loans

People can avail of a huge amount of money when they apply for a personal loan. The loan is given for a specified period. The interest rate and the repayment period are fixed for most of the personal loans. People have to repay the loan in the form of monthly installments. Personal loans can be amortized. It means that people have to pay interest along with the principal in installments. Such a loan is budget-friendly and people can repay them easily.

Things required to apply for a personal loan

The people whose age is in the range of 21 and2 6 years can apply for a personal loan. The institution, which they have chosen to take the loan, will ask for the yearly income of the applicant. Most of the institutions want the annual income should be at least $30,000. If the income is not that much, then interest rates can be high. If a foreigner wants a personal loan, his annual income should be $40,000 to $60,000.

Documents needed to avail the loan are as follows.

• Identity proof: The citizen of Singapore should have a Singapore Identification Card or Employment Card along with the passport.
• Address proof: This includes documents related to the address and such documents include bills, which consist of name and address.
• Income proof: Payslips, 12 months of central provident fund, Income tax notice assessment, are some of the income proof, which the applicant has to show.

Types of personal loans that people can avail

People can avail of different types of personal loans according to their requirement and these are described here.

Personal Installment Loan

People will get a huge amount of cash, which they can use to meet their expenses. Most of the people go for this type of personal loan.

Credit Line

This is a type of personal loan in which a debtor can withdraw the amount whenever he wants. The lender decides the amount of money that a debtor can draw. The debtor has to pay the interest only on the amount that he has withdrawn. After the repayment of the withdrawn amount, the debtor does not have to pay anything unless he withdraws the amount again.

Balance Transfer

This is a different type of personal loan. In this type of loan, the debtor has the option of transferring all other loans in one place. Many financial institutions provide a grace period of 6 to 12 months to pay back the loan.

Advantages and disadvantages of the loan

There are many advantages and disadvantages of personal, which are as follows.

Advantages

• The loan is available at a fast speed and people need not wait for a long time.
• No collateral is needed for unsecured personal loans. If the debtor is unable to pay the loan, the lender will have no right to take any of his assets directly.
• The interest rates for this loan are fixed.

Disadvantages

• The rate of interest is high.

Wrapping Up

These are some of the things, which people should know to apply for Personal Loan in Singapore. The loan is available at a high rate of interested but the interest is fixed and people get a specified time in which they have to repay the loan. People can go for some reputed companies like Easy Credit SG to avail of the loan in the most hassle-free manner.